The Office of the Comptroller of the Currency today proposed “a simplified strategic plan process” aimed at reducing community banks compliance burden under the Community Reinvestment Act. The proposal is designed to make the CRA strategic plan option more accessible and less resource-intensive for banks with assets up to $30 billion.
Currently, any bank may elect to have the OCC assess its CRA performance under an approved strategic plan rather than CRA’s standardized performance tests. However, the existing strategic plan process can be complex and difficult for community banks to navigate, leading to a chilling effect in the number of banks that have pursued the option.
The proposal aims to make strategic plans more accessible to community banks by providing more detailed guidance on the measurable goals and other components of a strategic plan required by the CRA regulation. It would also simplify the method for drafting and submitting a proposed strategic plan to the OCC for approval.
Comments on the proposed guidance are due 60 days from the date of publication in the Federal Register.
